New Delhi: The Goods and Services Tax which is expected to be rolled out in 2017 and the on-going demonetisation drive could impact the growth prospects of the domestic aviation industry in the next fiscal, the Centre for Asia Pacific Aviation (CAPA) has warned.
“The Government’s demonetisation move could impact the growth of the domestic civil aviation market by as much as 3-5 per cent in 2017 though the next fiscal is expected to be the third consecutive year of domestic growth above 20 per cent,” CAPA Aviation Outlook for Fiscal 2018 says.
The report states that the effect of the Government’s demonetisation move “were still unclear although there is no visible impact as yet,” but cautions that the introduction of the Goods and Services Tax next year may have a “ short term negative impact” on economic growth for a couple of years until more positive results emerge.
“The introduction of the GST may also reduce growth below projections depending on the tax rates applicable for air travel and inputs,” the report states.
28/12/16 Business Line
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“The Government’s demonetisation move could impact the growth of the domestic civil aviation market by as much as 3-5 per cent in 2017 though the next fiscal is expected to be the third consecutive year of domestic growth above 20 per cent,” CAPA Aviation Outlook for Fiscal 2018 says.
The report states that the effect of the Government’s demonetisation move “were still unclear although there is no visible impact as yet,” but cautions that the introduction of the Goods and Services Tax next year may have a “ short term negative impact” on economic growth for a couple of years until more positive results emerge.
“The introduction of the GST may also reduce growth below projections depending on the tax rates applicable for air travel and inputs,” the report states.
28/12/16 Business Line
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